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An investigation into how forced-labor-produced cotton and cotton-based goods from the Uyghur Region wend their way into international supply chains. Based on international trade and customs data, the report concludes that at the same time as Xinjiang cotton has come to be associated with human rights abuses and to be considered high risk for international brands, China's cotton industry has benefited from an export strategy that obscures cotton's origin in the Uyghur Region.
Last month, Chinese cotton yarn maker Huafu Fashion sent a warning to investors. “Multiple American brands have canceled orders,” Huafu said in a Shenzhen stock exchange filing, citing U.S. sanctions. “It’s brought negative effects to the company.” Huafu — which said it lost at least $54.3 million last year vs. a net profit of $62.5 million in 2019 — is one of the few suppliers to publicly acknowledge the sanctions’ effects. But thousands of companies worldwide are affected after the United States blacklisted 87 percent of China’s cotton crop — one-fifth of the world’s supply — citing human rights violations against Muslim Uighurs in China’s northwest Xinjiang region.